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Those wallets spend the money, perhaps by burning it, and immediately become untainted. I think this is why FIFO is a better system that LIFO.
by rocqua 9y ago
Those wallets spend the money, perhaps by burning it, and immediately become untainted.
I think this is why FIFO is a better system that LIFO.
- dogma1138 9y agoBut if they are tainted on what can they spend that money? Say I have 10 BTC you transfer me 3 stolen ones I want to clean my wallet where do I transfer those 3 BTC and what happens to that wallet? What happens when you don’t actually notice that it happened and try to purchase and item with your BTC? Do you get declined by the merchant because some % of that was tainted? If so how do you get that translation reversed?
- rocqua 9y agoIf you get those 3 stolen coins, and don't want them. The easiest is to just transfer them to a burn-address. If you fear people are ever going to demand it back, either try to transfer it back, or transfer it to a separate holding wallet. Authorities might also set up a special address for collecting these kinds of coins. This makes me think, what happens to fees? Suppose I take those 3 BTC and 'burn' it by creating a chain of 100 transactions, each with a fee of 10%? At the end, all of the stolen coins have evaporated into fees. Are those fees tainted? If not, miners could try to white-wash coins this way.